Health Care Aid to Depend on Tax Returns

Income tax returns for 2012 come with implications related to health care. The returns a person files will be the chief factor to determine his eligibility for federal assistance when buying health insurance through the new state health exchange which will operate from 2014.

According to the federal Affordable Care act all Americans are required to buy health insurance or face tax penalties.

There will be no change for who are covered by employers. Federal subsidies will help pay for health insurance – assistance tax credit which will lower the amount of premium paid by an individual or a family.

Each state will have its own exchange serving people who buy their health insurance directly, as well as a separate one for small businesses. The insurance exchanges will operate in every state, even those led by staunch Republican opponents of the health care overhaul. In a number of states, the exchanges will be operated by the federal government, over state opposition.

"You will pay a percentage of your income as your share of the premium, and the federal government will pay the rest," said Brian Haile, senior vice president for health policy at Jackson Hewitt Tax Service. "The percentage that you pay will depend on your household size and your income."

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Hannah Punitha (IRDA Licence Number: 2710062)

Pamela Yip, March 2013

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Source-Medindia